Finding Text
Enrollment Reporting Type of Finding - Material noncompliance with Enrollment Reporting compliance requirement and material weakness in internal control over compliance Program: Student Financial Assistance Cluster Assistance Listing Number: Federal Pell Grants 84.063, Federal Direct Loans 84.268 Federal Agency: U.S. Department of Education Criteria – 34 CFR 690.83(b)(2) and 34 CFR 685.309 provide regulations to institutions for the accurate and timely reporting of student enrollment information. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates to the Department of Education. The institution should have sufficient internal controls over program compliance to report information accurately and timely. Condition – Seven students were found to have a status change not reported within the 60-day requirement per enrollment reporting guidelines. One student was found to have a status that did not match the College’s records. Cause – During the year ended June 30, 2025, the College switched financial assistance software. After implementation, the College discovered that the new system was not accurately reporting the student’s status so when the information was submitted into the NSLDS Clearinghouse the status was not updated. The internal controls over the review of student status changes was not effective at preventing and/or detecting and correcting noncompliance with compliance requirements. Effect – The status changes were reported incorrectly and/or untimely to the Department of Education. Questioned Costs – Not applicable. Context – Out of a sample of 40 students with status changes, eight students were found to have status changes reported that were not compliant with the enrollment reporting requirements. Identification as a Repeat Finding - A similar finding was identified in the audit for the year ending June 30, 2024 as finding 2024-001. Recommendation – The individual responsible for submitting effective status change dates needs to be educated on the requirements and the internal controls should include a comparison of the College’s records to what is ultimately certified by the NSLDS in order to ensure accurate data is transmitted by the College’s system. Views of Responsible Official – Management concurs with the finding and is providing those responsible for compliance with appropriate education on the compliance requirements. The College is reviewing the processes and controls and will make changes as necessary to prevent and/or detect and correct noncompliance on a timely basis.